2018 Auditor General Report – A Tale of the Same Woes

The blogmaster feels an infinity for the Auditor General of Barbados. For many years we have regurgitated a similar message, the need for transparency to how we do business. Some ask what has Barbados Underground blog been able to achieve in its 12 years of existence? The blogmaster responds by saying what has the Auditor General been able to achieve in the decades of that office existence?

The blogmaster is motivated by doing what any civic minded citizen should be minded to do. If the result is that it makes a difference then he will smile, wider. The smile will always be there because a civic minded son or daughter of the soil will always smile when they commit unconditionally to“the cause that lacks assistance, the wrong that needs resistance, for the future in the distance, and the good that we can do”is realised.

Here is the 2018 Auditor General report for those who missed it., The message is the same as it was last year and the many years before. Here is what we also know, it mattered not that the Barbados Labour Party or the Democratic Labour Party were in office. It mattered not that Barbadians are considered a well educated people.

In the 2018 report the Auditor General rapped this new government on the knuckles about the lack of transparency surrounding the restructuring exercise. There is a note about unauthorized spending by the Barbados Police Force. The Central Bank of Barbados and the National Insurance Scheme (NIS) were fingered for being behind in the preparation of audited financial statements. Congratulations to the Enterprise Growth Fund, Financial Services Commission, Grantley Adams International Airport and FAir Trading Commission for doing their jobs by declaring current audited financial statements.

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190 comments

No I am not happy with late or improperly prepared GoB Accounts. Neither do I believe in making bricks without straw. The Auditor General’s Dept must be properly staffed. The queries and infelicities must be addressed by the Accounting officers i.e Permanent Secretaries and Chief Financial Officers. Those not functioning satisfactorily should be separated.

@John A

Business decisions are made on up- to- date information. Audited accounts are stale and may be irrelevant to making wise decisions. Management Accounts no later than 10 days overdue are the bases of BoD decisions in the public and private sectors.

The not too subtle point you continue to miss is why would governments adequately staff the AG department if there is no serious attempt to follow through on repeated recommendations from that office? It is not whether the blogmaster agrees, it is more about what we know will happen based on prevailing culture and modus operandi.

You know nothing. Past behaviour is no fool proof indicator of future behaviour. How can you be sure ? Are you suggesting that we do not arrest criminals because some smart lawyer will get the case thrown out? What kind of logic is that?

Regardless to what you say about in-house financials they are merely a carry on from the last audited financials. They must have a base of continuance and that is the source.

Are you saying that 3 consecutive years of in-house financials could be more accurate than 2 years of audited financials and the last year only of in-house?

Sorry can’t agree with You there at all. All in-house figures are is a live rolling set off numbers since the last audited ones and until the next audit is done. Therefore by its very nature the source of the roll over to in-house from last audited must be both correct and timely or it’s ” garbage in garbage out.”

Please note carefully in the Introductory pages of the AG report of March 2018 the definition of an audited report and what it does and cannot do. It is standard caveat in all audited reports for Public and Private entities. They cannot and do not guarantee accuracy.

” The public is herby advised that Seeing that we are unable to produce audited financials for the last 6 or more years, we shall continue to function on in-house figures since 2014. All errors therefore made during the 5 years of in-house figures will therefore be brought forwarded and compounded by further unchecked errors made in future years until we can get around to do an audit. Should that ever occur we may or may not bother to reconcile the figures depending on how we feel. The public’s patience is therefore requested in the matter. Further please be advised that when our government speaks of a sound NIS it is more of a guess and must not therefore be taken as a statement of fact.”

All audits carry a disclaimer that exempts them from producing financials based on false information. Usually in the accompanying notes they will state the areas they are uncomfortable with. Problem is we can’t even get an audit they uncomfortable with! Lol

The problem here is that too many entities have refused to bring their financials up to date making the job of the AG dam near impossible. Look at the variances between recorded and accounted for in terms of cash that walk away, they are massive amounts. The NIS should never of been allowed to get this far behind as they are too many people dependant on their pension. Also we need audited financials there more than ever so the public can see for themselves the effect the debt restructure had on the fund.

As taxpayers we should accept no less and I can’t see how different should be expected of us.

There can be no doubt GoB has been negligent in maintaining its physical ,financial and human capital. These are areas that require GoB ‘s full attention . I do not detect any urgency in dealing with them. I hope there will be no unacceptable consequences.

I like you see no urgency from either party to deal with this waywardness. The NIS though is my biggest issue and concern, as alot of low and middle income Bajans will be the most dependant on the NIS fund. The better off may have been able to invest in rental properties or have sizeable assets parked in mutual funds and private retirement plans, but who is looking out for the salaried person making $3000 a month or under?

I find the way we played with the NIS to be unconscionable at the very least. I will also add my total dissatisfaction at how this government have gone about trying to deal with it as well.

The not too subtle point you continue to miss is why would governments adequately staff the AG department if there is no serious attempt to follow through on repeated recommendations from that office? (Quote)

@ David Blogmaster

Are you implying there is some ulterior motive for successive governments not adequately staffing the Audit Department?

You know this is several years that the RBPF do not have an adequate amount of police officers? The last count they were short by just over 200.

The following article is instructive. The Police has been active in trying to recruit, with limited success.

Changes coming to police requirements

Article by
Barbados Today Published on
May 9, 2019
The door has now been opened for older men and women to join the Royal Barbados Police Force.

However, Attorney General Dale Marshall says time will tell if the adjustment will result in an increase in recruits at the Regional Police Training Centre (RPTC).

In light of decreasing interest in joining the Force, Marshall this evening revealed that Cabinet had amended the legislation which required persons to be between the ages of 18 and 30 to do so.

Speaking at the 143rd Passing Out Parade and Graduation Ceremony at the RPTC’s Seawell, Christ Church headquarters, the Attorney General said that age limit had now been raised to 35.

“We consider that in today’s Barbados a maximum age limit of 30 is simply too low if we are going to expect to recruit an increasing number of police officers. Cabinet has therefore just agreed that the legislation will be amended to increase the upper limit from 30 to 35,” he said.

One reason I like the USA is that despite the numerous problems that we have, there is the underlying belief that we will overcome them. Sometimes we go backward instead of forward, but I know that we will discover the error of our ways, correct them, recover lost ground, and move the baton closer to the finish line. God Bless, you America.

That comment is based on what I like to refer to as “book smart vs street smart” not to mention a few holes in his argument.

To say rates are low so invest, one may have noticed the fact that they were no suggestions made as to what to invest in, wonder why? So let’s help the gentleman.

Real estate is off around 30 percent both in terms of sale price and rental income. To make things worst a 61% increase in Land tax on some did little to help the risk to return ratio. So let us cross that off the list.

Government paper has slaughtered its owners turning many that could of been comfortable retirees into part time workers till the grave. So cross that one off too.

I got it a small business! Now which of the many half empty and struggling malls should I open my shoe shop in? Cross that off the list too then.

So we have established the conditions for investment are not there as we are in a recession with threats of further taxation looming, which could include the move to an Increase in vat to 20%. Lord the environment for investment piss poor so cross the shoe shop off the list too.

Alright this is my last straw I going buy stock in the stock market and be the Bajan Warren Buffett! Wait hold on some days I hear that only trading like 400 shares at $4 so if I but who I going to sell to when I ready? Alas another X there too.

Now should I take comfort in the fact the bossman say we got $1.2B in reserves? Wait we ain t pay a foreign creditor a cent for 13 months so if I deduct what owed how much I left with? No I going run and put my two cents on the bank!

Oh hell I just forget that is where they was at the begging of my post so who idea it was again to make me take dem up?

Street smart vs book smart. Theoretical finance based on fund availability and low interest without taking into account environment and potential for a decent ROI.

Summary:

Political statement made to instill confidence which when dissected is not worthy of reading.

John A,
How come Moody’s gave an upgrade and you give so many down grades? You seemed to have on the ground and Underground information. Most likely you did a fundamental analysis. Piece O Legend soon going to ban you.

I was looking at the stock market but when I see some days only 4 hundred shares was trading at $4 I say even if I did make 10 percent after a year thay would be $160. But then I would have to subtract fees, the 4 bus fares at $3.50 each to get town plus lunch money, so I didn’t bother.

Be carefully with that shoe thing cause I was told a past MOF went in a local shoe shop and ask for a pair of size 14s only to be told they were out of stock. To prove his master of maths he told the clerk to bring 2 pairs of 7s.

@TheoG
after the BHL sale, i was flush with cash. Of the limited choices, I selected sagicor shares and GEL shares. Why? IMO there were the ‘most likely’ to take their business offshore, and trade in another currency. Sagicor is obliging, GEL not so far.
Barbadians must be able to invest elsewhere.
For understandable reasons, many do not like Dr W. But go back and read what he has said recently. With a few tweeks, it can work.
for decades, the Barbadian dream for those with money, has been to convert to a hard currency, and invest it offshore. It was not only a buffer against local circumstance, it provided much higher yields. And liquidity. It would take me months, maybe years, to offload my shares in Bim. If it were not for a ‘put through’, it would have taken equally long to acquire them. And the broker fees in Bim are so far beyond acceptable, they eat a huge portion of any yield.
Friend of all, and satellite of all.

If we accept what the last MOF said when he stated between BRA and Customs they were owed “just over $1B” then why didn’t we focus on collecting even half of that instead of austerity ? As Vincent likes to say the indirect tax system got more leaks than an old main. Why didn’t we address this matter and at least try to collect another $100m a year currently lost in leakage ?

Instead the powers opted for a $400m austerity program. Had we of collected even $300m of receivables owed and plugged just $100m in annUal leakage, there was the $400m. That would of meant the $400m in New taxes could of been either done away with or considerable reduced. That liquidity if left in the system would of been enough to spur growth in the economy.

But no it easier to tax we tail than get the 30 ministers to do their job l

We need to improve tax collection however the questions asked about this matter remain unanswered. One senses there are other considerations you must factor. What percentage of tax outstanding is collectible. If it is collectible over what period etc.

This form of vodoo economics that this govt has embarked is stale left over soup which has been tried over and over again by the IMF in these third world countries
Proof of any significant economic growth emerging and brought about after austerity plans have been implemented is yet to be found
Jamaica is a clear example of entering a IMF plan and reaping the sweets of an economic growth plan afterwards
Just like barbados most of Jamaicas revenue is generated from tourist

This nor no other government was ever good at collecting money so you don’t give them it to collect. After all you going Give the same people that let the receivables run up the money to collect?

No we like English Companies so you contact some like LOVETT UK and say fellows we got $1b here in receivables come deal with it and take 20% and give us the rest. Or the other road which Hal likes, is sell the dam debt to a Vulture for say 40 cents on the dollar and let them fight up with collecting it.

Don’t let no politician fool you bout its not that simple. Why they don’t tell you instead the truth which is ” listen some of dem that owe is party financers left dem lone.” Plus remember the last MOF said SOES and others from government had owe the Vat office over $200m alone. If you sell to the debt vultures they coming for that $200m too! So more tax in we tail to find it and pay them.

You seeing why a politician would tell you well it ain’t that easy now?

The Auditor-General has done his duty in accordance with the Financial Administration and Audit Act. Examine and report to Parliament by the 31st ,December.If the report points to infelicities then it is up to those with the requiste responsibilities also provided for in the same Act to perfrom their duty. The duties of the Auditor-General do not include prosecution. At most, hemight becalled as a witness for the prosecution as ha happened in the past when charges arising out of his report reach the court.

It took Jamaica 32 years within an IMF agreement ridfle with grueling austerity policies to reach a goal of 99%of its GDP
Barbados for the most part has a smaller population which can least afford to be handed austerity measures for another 30 years with out govt having a growth plan
IMF statement which adress a strategy of growth by govt says enought to the inquisitive mind that govt continual borrowing as a supplementary policy for keeping the reserves in good standing would be needing additional fiscal support in order for the reserves to be sustainable long term
Govt needs to take the IMF hint as one withall seriousness for the good of the people and country
After a year of borrowing govt should released itself from the coattails of the IMF and put barbados on an economic path absent of more austerity measures

Mottley also indicate for the most part that govt would continue in austerity
Which in itself is an eyeopener to the inquisitive mind that govt has no real-time initiatives for creating a growth strategy for the country
Also Mottley did send a message of desperation to the IMF while agreeing in part that vat could be increased as a solution to help tackle the debt
While the poor struggle govt glorious expectations are handed to the IMF behind closed doors
One day coming soon the people would say no more

I not too sure what the author of that quote meant there. You will have to seek clarification from him as a result sir.

All I can tell you is that growth got a + in front it and decline a – sign. Although I hear some in recent years talking about ” negative growth”. I feel that is only a polite word for decline though. Lol

Thanks for confirming. But the repeaters of the opposite position are not interested in truth nor facts. They are looking for answers that fit in with their view of reality, or an excuse for escaping their responsibilities. And some people thrive on chaos. They like it so.

On the Oppenheimer question we touched on before I checked but can’t find any information post 2014 for what return they were getting for the NIS net of their fees. So for the last 6 years your guess is as good as mine. The last figure we spoke on of 6% did not state whether that was net of fees or gross return either, so even when a report was given we not sure what it speaks to.

A lot of this is gross ignorance and incompetence, not corruption. We continue to appoint people on the basis of their degrees, not knowledge and experience. I know of a government job that was held up until a certain person graduated from a US university to take up the position.
The vacancy was not advertised. What I do know is that the person who held the original position (she too was appointed right out of university to an unadvertised position) because she fell out with the minister.
Rotating mediocrity is the name of the game. We have normalised this kind of behaviour.

The phrase may sound like a piece of wisdom; but taken out of its original context, it is nonsense when applied to the real world. I cannot imagine a company operating for a financial year and no cash flows through it. Did the customers pay with real assets? Did the company pay labour and suppliers of raw materials in quantities of its output? I bet you that same defaulter used cash to finance other activities not relevant to the company’s operations.

Did the private sector respond positively? If they did it was not reflected in the statistics published by BSS, nor the increase paid by the NIB for redundancies and unemployment benefits over that period. David there are several ways of verifying pronouncements by propagandist. One only has to cross reference figures. There are things that do not add up. Use them as red flags.
Your auto-correct algorithm working over time again.

There is and you know it. Many companies operate with marginal cash flow, they default on statutory obligations and eventually close down. This point has nothing to do with keeping on employees for longer than the P&l indicate they should.

Tron we shall see how much strength the populace can endure for the next five years under the IMF policies
Maybe you ought to take off your rose color glasses and look among the crowd and waddled through the death and mayhem on the streets since this govt took office before u usher your nonsensical predictions

Crusoe
Yes i do have the gall and the right to crticize the IMF austerity measures
Just for good measure i invite you to take a walk amongst the populace and rub shoulders with the people and listen to their sad story of pain and suffering
Bro it is not easy having no job govt only interest is paying off govt debt and refusing to give adequate monetary assistance to retrenched workers
Bro it is not easy
Now go ahead and spend the next five years telling me how ten years got barbados in this mess
I all ears duffus

Robert Goren
Simply ignore what i said in my earlier comments
Nothing of what i said happened in barbados
I made the whole story up
It was all a dream
My bad
My apologies
Hope u feel better
But let me warn u it aint going to get better
The criminal horse has already bolted
People backs are pushed against the wall

Anybody remember Arch Cot the same principle applies in the death of that boy who fell in the well yesterday
Bureaucracy gone wrong
Waiting to see or hear if the PM would visit this family member
Our people lives matter

I don’t believe this current BLP administration is really interested in addressing the problem of corruption in government.

I recall on August 14, 2018, while speaking in Parliament, Ronald Toppin questioned an invoice Michael Carrington submitted to BIDC, in the amount of $706,450 for providing legal services relative to sale of a BIDC building at Lot A1 Newton Business Park, Christ Church to Gildan Activewear Properties (BVI) Inc. in 2010.

It was alleged Carrington wrote a letter to the BIDC in 2011, in which he indicated that at the time the sale transaction was completed, he was NOT REGISTERED with the VAT Division………and REQUESTED the BIDC to pay the VAT Division, ON HIS BEHALF, $92,146 of VAT incurred as a result of the sale and included in his legal fees.

As a lawyer and Speaker of the House, Carrington had to be AWARE of the VAT laws, which, at that time in 2010, required businesses and individuals providing goods and services over the threshold of $60,000 per annum, to register with the VAT Division.

Here we have a lawyer, who at the time was obviously earning more than $60,000 per annum, ADMITTING to a government agency he was NOT registered for VAT, but still CHARGED VAT………

………..and to “make matters worst,” he wanted that agency to USE $92,146 of its allocated funds……. “TAX-PAYERS’ MONEY”…… to PAY the VAT on his behalf.

This is almost ONE (1) year since Ronald Toppin made his revelation in Parliament….. and we haven’t heard anything more on the matter.

How can a well be left exposed without having proper protection and govt officials after being called on numerous times does not do due diligence
A young man lost his lived and now we have blp supporters pretending to be blind deaf and dumb at the cries of the young man family
What a god damn shame
The laws were not meant to protect the rich but also the poor
In one year this gladiator govt has shown the poor how easy they can be manipulated over a glass of koolaid
Mia said gimme de vote and watch muh
Boy she not meking sport
Nah word coming from her mout on the acceleration of crime and violence
But rather wear a pretentious mask while rubbing shoukders with the rich ans famous
What a thing doah

“How can a well be left exposed without having proper protection and govt officials after being called on numerous times does not do due diligence…”

If ministers are responsible for policy and heads of departments are responsible for administration, how does a well come under the remit of a minister or the prime minister?

When tenants call NHC’s maintenance department about a housing issue, does maintenance calls management, which in turn calls the PM to tell her something want fixing?

I’m sure you recall the NHC (Transfer of Terrace Units) Bill 2012, which was first read in Parliament on January 8, 2013 ……… the NHC (Transfer of Tenants) Act provided for the transfer of units owned by the NHC to tenants who have lived in and/or paid in those units for 20 years. How about if those tenants had been proactive?

And while we’re at it, how about inviting Hammie Lah, Kellman and Stuart on the walk along?

After all, “a young man lost his lived and now (it seems) we have DLP supporters pretending to be blind deaf and dumb at the cries of the young man’s family, as well,”………..

……….. because, rather than being SYMPATHETIC, their only INTEREST, according to another contributor, is POLITICIZING this unfortunate situation.

Mia is not Minister of Tourism
However she jumped fast into the issue of the two missing jet ski persons
One would think she might also get herself with all enthusiasm into the well issue vocally asking head of the depts for answers
After all a live is lost and due dilligence is the optimum word

Well.well
Govt excuse .they did not have the money to fix the Well
However all should take nite that govr found or had the money to pay White Oaks and the loans borrowed from rhe IMF
In barbados it seems as if itb always take tragedy to exposed govt side of the socio economic fence
Here an innocent life gone and govt declares
Sorry we did not have the money t0 fix the well
However inquring minds want to know how and Where did govt find the money to pay White Oaks
Maybe some blp yardfowl can give or have the answer

Mariposa you are a sick, despicable human being.For even you to come on this blog and try to be political at this unfortunate death is beyond words.My advice, take a chill pill as you are doing the Dems a disservice and Bajans in general.

Mariposa is your typical consummate, dye-in-the-wool politican/ political loyalist as they come. Believe you me, the world is full of people of that mindset. In fact they are dime a dozen. I have seen people with those political temperament even go so far as to blame the government of the day for ‘act of god’ tragedies. Therefore, If someone in BIM were to be fatally struck by lightening tomorrow, it wouldn’t be a stretch to say that Mariposa would probably indirectly blames the government for the unfortunate soul demise.

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Here are the 2 graphs for the week ending 5th June. In relation to active cases 4 of the 6 selected Caribbean countries are now trending to zero cases. The other 2, Jamaica and Guyana have a greater number of cases but are themselves rapidly trending downwards - Lyall Small